Strategi PT Telkom Pasca Go International

• Main Author: Perpustakaan UGM, i-lib
• Format: Article NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 1996
• Subjects: Jurnal i-lib UGM
• Online Access: https://repository.ugm.ac.id/25206/; http://i-lib.ugm.ac.id/jurnal/download.php?dataId=8194
• Institution: Universitas Gadjah Mada

Changing Telkom status from state-owned company (SOE) to public company was a lengthy process, during which management faced various challenges and had to overcome many obstacles, before as well as after IPO. Selling shares was the preferred option, since not only did this not increase Telkom's debt burden, it also required transparency of manage-ment. To reach this goal, the firsttrial byfire was the program to restructure the company. Telkom was still a slow moving company: like a plodding dinosaur, it was slow in making decisions and in setting up business units, which were expected to be profit centers. Along with this restructuring, management, in collaboration with the government, introduced strategic alliances with experienced companies, through joint ventures. The initial idea to establish joint venture companies in the regions, now administered under the divisions, came from the government. However, Telkom thought it would be more profitable to have joint ventures of limited duration. The most important aspect of company operations is to improve professional-ism within the company. The presence of experienced professionals would spur a change in the attitude of Telkom employees. This was essential for a company which was changing status from alnonopoly to one which had to be able to compete in a freer environment. In early 1995, the government decided to sell a portion of Telkom shares through a dual listing: one on the Jakarta Stock Exchange and Surabaya Stock Exchange, and the other on the New York and London Stock Exchanges. The latter was most beneficial to Telkom, since these two international markets are where international investors gather. These two exchanges are very selective in choosing the companies they list: only companies with good prospects and large profits can get a listing. Choos-ing the large cities of the world for the road show was also beneficial for international investors. The international reputation of Telkom petfor-mance was confirmed when it achieved listing on the international capital market. This should convince the Indonesian government to encourage the sale of shares of other Indonesian SOEs in London and New York. An original share price of Rp 2 800 was adjusted to meet market conditions, and finally set at Rp 2 050 upon listing, closing at Rp 2 175 at the end of the first day's trading. Four months later the price reached Rp 3 950 per share: an increase of approximately 91 percent over IPO price. Looking back at Telkom going public, much could be learn from the experience. For example, because the number of share sold was so large, the ministry of Finance decided that Telkom use eight investment banks and securities firms as underwriters. Four were joint intenational global underwriters Four were joint international global underwriters for the international market, and four were joint domestic leading underwriters for the Indonesian market. This decision made the process more complicated and confusing because Telkom was faced with a variety of interests. Being a public company, Telkom must prepare a strategy to maintain its leading position on the domestic market, and also improve is ability to face the hyper-competition in telecommunications on the domestic and international markets. Management is commited to the vision to achieve world class standard by 2001. Another long and complicated must ensue to achieve this goal. All effort are actually only means to satisfying customers: only a company which provides customer satisfaction can survive